According to a 45 page report by Ernst & Young, released last week, 87% of roughly companies surveyed said Russia was an attractive or very attractive investment for properties, while 83% said the same about Europe. Within the margin of era, that makes Russia as good, if not better than Europe when it comes to the global property market.

The most active investors in this space are private wealth management firms gobbling up lower cost Russian properties, with 57% saying they were the most active investors in the country followed by Real Estate Investment Trusts.

Moscow is expected to be the most sought after spot for commercial real estate investors, with REITs going after retail space outside of the city. Meanwhile, demand for residential properties will be hottest in Russian cities with populations of a million-plus. In Moscow, luxury and higher end homes is the focus in the billionaire capital of the world.

According to the companies surveyed, which include large banks and insurance firms, their Russian real estate portfolio is expected to increase this year with 84% of respondents saying they'll close more deals this year compared with 57% saying so in 2012. As a result of this burgeoning demand for Russian property, housing and commercial real estate values are expected to rise, though the report did not estimate by how much.